Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.

FBR Capital reiterated an Outperform rating on Engility Holdings, Inc. (NYSE: EGL), and raised the price target to $40.00 (from $35.00). FBR is expecting several positive drivers for the stock over the next 12 months. President-elect Donald Trump has advocated repealing the defense sequester, and his positions on defense generally point to a buildup in U.S. military power.

Analyst Christopher Horn commented, "We are raising our price target on Engility Holdings to $40 from $35, given several positive drivers for the stock that we expect to play out over the coming 12 months. Valuations in the defense space have shifted higher in recent weeks following Republican election wins, but we believe that EGL shares remain over-discounted given the company's substantial growth opportunities. We think investors ought to consider a few points: (1) Engility has better organic growth potential than certain peers, but we do not see it fully priced into shares; (2) shares are substantially discounted to the group on a PEG basis, despite the EPS benefits of recent refinancing efforts; and (3) a Republican Congress and presidency could spur DOD spending higher, diminishing one of the main obstacles to growth that Engility has faced over the last few years. Considering these points, we continue to believe that EGL shares are a good opportunity for investors looking at the A&D space, and we reiterate our Outperform rating."

For an analyst ratings summary and ratings history on Engility Holdings, Inc. click here. For more ratings news on Engility Holdings, Inc. click here.